Premier Mike Baird wants to help those trying to break into Sydney’s property market by investing in housing infrastructure.
The NSW government announced state budget will include a $400 million injection into the Housing Acceleration Fund to build the infrastructure needed to develop more dwellings.
He said outside a development in Sydney’s west today that the investment will speed up the delivery of more housing, with supply a key weapon in housing affordability in the long-term.
Supply remained the premier’s solution to concerns about investors buying up new dwellings and pricing first home buyers out of the market.
‘The more supply you have the more options available for everyone,’ he said, whether that be units or townhouses.
And he said first home buyers are being supported through grants, up about 10 per cent this year, and stamp duty concessions of up to $30,000 if they buy new properties.
‘We’re encouraging first home buyers through everything we’re doing, but the principal thing we can do … is get supply moving,’ he reiterated, adding that this as well as supporting new housing developments with infrastructure will put downward pressure on prices.
When queried about abolishing stamp duty tax – a huge source of revenue for the government – Mr Baird said he was all about lower taxes, but doing it in a way that’s responsible and in the state’s best interest.
‘We’re happy to play a constructive role in tax reform … we are happy to consider stamp duty in the long term,’ adding that the priority right now was housing affordability.
Another way the Baird government hopes to tackle housing affordability is through an independent Greater Sydney Commission.
Funding will be allocated in Tuesday’s budget for the London-style commission which will have local councils and the state government working together to ensure 664,000 new homes are built by 2031 in areas supported by the necessary infrastructure.